The European Commission presented the autumn prospects for the European economy. This indicates, among other things, that our country suffers from one of the largest budget deficits in the euro area.
Why is this important?During the energy crisis, Belgium took several measures to protect the purchasing power of its citizens. Furthermore, there was very high inflation, which meant that government benefits and wages were adjusted to match the rise in life expectancy. All of these elements put pressure on the government’s public finances.
In the news: In the European Commission’s forecasts for the fall, we read that the Belgian budget deficit will rise from 3.5% of GDP in 2022 to 4.9% this year and next. In 2025, the deficit could reach 5%.
- The loss of energy subsidies and increased income from corporate taxes will stabilize the deficit at 4.9% of GDP in 2024.
- The additional increase will reach 5 percent in 2025, according to the European company
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